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Johannesburg - Local network provider MTN’s new BEE scheme, Zakhele Futhi, has raised approximately R1.094bn from more than 81 000 applicants from across South Africa since the launch of the public offer on September 12.
This is according to a statement released to shareholders on Tuesday in which MTN said that Zakhele Futhi Ordinary Shares will be allotted and issued to successful applicants on November 23 2016.
READ: MTN unveils new R10bn BEE scheme
MTN’s Zakhele Futhi offer, which replaces the initial MTN Zakhele empowerment vehicle, has allowed qualifying black participants to subscribe for and beneficially own ordinary shares with a minimum investment amount of R2 000.
"In addition, applications were received from 11 203 qualifying MTN Zakhele Shareholders holding in aggregate 13 479 330 MTN Zakhele Shares to re-invest the MTN Zakhele Scheme Consideration in respect of these MTN Zakhele Shares into MTN Zakhele Futhi Ordinary Shares, equating to approximately R0.817bn," said the company.
READ: MTN launches new R10bn BEE scheme
MTN, though, said that applications from the black public and qualifying MTN Zakhele Shareholders, although exceeding the minimum equity raise amount of R1.2bn, were less than the target equity raise of R2.5bn.
A statement by the company read: “MTN has exercised the option for its nominee to subscribe for the MTN Zakhele Futhi Underwrite Shares and will accordingly subscribe for 27 848 672 MTN Zakhele Futhi Ordinary Shares for an aggregate consideration of R557m.”
The total number of MTN Zakhele Futhi Ordinary Shares to be issued and allotted on Wednesday, November 23 is 123 416 822.
MTN has previously said its Zakhele Futhi vehicle is set to last over an eight-year period.
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